Recovery in Capital Investment Driven by Improving Employment and Income Conditions and the Effects of Policy Measures

「During the consolidated fiscal year, the business environment surrounding our Group remained on a gradual recovery trend against a backdrop of improving employment and income conditions, although uncertainty about the outlook increased due in part to the impact of soaring energy prices accompanying heightened tensions in the Middle East. Demand for capital investment, including automation and technological innovation in AI and DX to address labor shortages, also remained firm. Meanwhile, concerns over a slowdown in overseas economies due to geopolitical risks, including China's resource restrictions and developments concerning US trade policy, persisted, as did downward pressure on the domestic economy and the impact of rising prices, leaving the outlook uncertain.」

「During the six-month period ended [the current interim period], the business environment surrounding our Group remained characterized by solid demand for capital investment, including automation and DX to address labor shortages, against a backdrop of firm corporate earnings. Meanwhile, concerns over a slowdown in overseas economies due to the impact of US tariff policies persisted, and the period was marked by heightened uncertainty over downward pressure on the domestic economy and the impact of rising prices.」

「On the other hand, demand for capital investment, including automation and DX to address labor shortages, remained firm. However, concerns remain over risks of a slowdown in the overseas economy, driven by developments in the Chinese economy and the effects of changes in financial markets and policies in Europe and the United States, which could weigh on the domestic economy, as well as the prolonged inventory adjustment in the manufacturing sector.」

「As economic activity normalizes and employment and income conditions improve, capital investment, including digitalization and decarbonization, has maintained its recovery trend against a backdrop of solid corporate earnings and other factors, remaining firm primarily on domestic demand.」

「The economy is on a recovery trend due to the normalization of economic activity accompanying the reclassification of COVID-19 as a Class 5 infectious disease and improvements in employment and income conditions.」

「Shortages of semiconductors and various materials and soaring material prices have persisted, while Russia's invasion of Ukraine remains unresolved. There are downside risks to the economies of Europe and the United States from accelerating inflation and financial instability. In addition, growth in the Chinese economy has slowed, leaving the outlook uncertain.」

「However, shortages of semiconductors and various materials and soaring material prices have persisted, while the situation in Russia and Ukraine remains unresolved. The economic slowdown caused by accelerating inflation and monetary tightening in Europe and the United States, as well as the renewed spread of COVID-19 in China, has left the outlook uncertain.」

「During the six-month period ended [the current second quarter], the business environment surrounding our Group remained uncertain. As efforts to balance COVID-19 prevention and economic activity progressed, personal consumption, particularly services consumption, recovered, corporate earnings and capital investment gradually recovered, and employment and income conditions also gradually improved. However, shortages of semiconductors and various materials and soaring material prices persisted, while uncertainty remained due to supply-chain disruptions caused by the situation in Russia and Ukraine and lockdowns in Chinese cities associated with China's zero-COVID policy, as well as economic slowdowns resulting from accelerating inflation and monetary tightening in Europe and the United States.」

「During the three-month period ended [the current first quarter], the business environment surrounding our Group remained uncertain. As efforts to balance COVID-19 prevention and economic activity progressed, personal consumption, particularly services consumption, recovered, corporate earnings and capital investment gradually recovered, and employment and income conditions also gradually improved. However, shortages of semiconductors and various materials and soaring material prices persisted, while supply chains remained disrupted due to the situation in Russia and Ukraine and lockdowns in Chinese cities associated with China's zero-COVID policy.」

「During the nine-month period ended [the current third quarter], the business environment surrounding our Group was characterized by the economies of Europe, the United States and China entering a recovery phase, corporate earnings and capital investment turning toward recovery, and employment and income conditions beginning to show signs of a gradual recovery. However, repeated waves of COVID-19, including the emergence of new variants, continued, with no end in sight. Shortages of semiconductors and various materials and soaring material prices also persisted, leaving the manufacturing sector as a whole in a severe phase and the outlook uncertain.」

「During the six-month period ended [the current second quarter], the business environment surrounding our Group began to show bright signs, as the economies of Europe, the United States and China entered a recovery phase with COVID-19 vaccination progressing, while in Japan, business performance in manufacturing and other sectors was beginning to improve, supported by increased exports.」

「During the three-month period ended [the current first quarter], the business environment surrounding our Group remained difficult and the outlook uncertain. Economies in Europe, the United States and China were on a recovery trend as COVID-19 vaccination progressed, while in Japan, business performance in the manufacturing sector was beginning to improve, supported by increased exports accompanying the recovery in overseas economies. However, repeated waves of COVID-19 continued, and difficult conditions persisted due to factors including declining consumer sentiment, continued restraint in capital investment, and worsening employment and income conditions.」

「A decline in consumer sentiment, restrained capital investment due to deteriorating corporate earnings, worsening employment and income conditions, and continued severe conditions in both the domestic and overseas economies」

「A decline in consumer sentiment, restrained capital investment due to a sharp deterioration in corporate earnings, and worsening employment and income conditions」

「The worldwide spread of the novel coronavirus disease has still not come to an end, and corporate earnings and employment and income conditions have deteriorated as corporate activity stagnated. Both the domestic and overseas economies remain in a severe phase.」

「The domestic economy had remained on a gradual recovery trend as corporate earnings and employment and income conditions continued to improve. However, toward the end of the fiscal year, the novel coronavirus disease spread worldwide, dramatically changing the outlook for the economy. Both the domestic and overseas economies entered a severe phase, and the situation remains uncertain.」

「While improvements in corporate earnings and employment and income conditions continued, the economy remained on a gradual recovery trend, but」

「While improvements in corporate earnings and employment and income conditions continued, the economy remained on a gradual recovery trend, but」

「During the nine-month period ended [the current third quarter], the business environment surrounding our Group remained on a gradual recovery trend, as improvements in corporate earnings and employment and income conditions continued.」

「Corporate earnings remained firm due in part to the effects of economic policies, while employment and income conditions were on a recovery trend.」

「During the three-month period ended [the current first quarter], the business environment surrounding our Group remained on a gradual recovery trend, as the economy improved amid a recovery in corporate earnings and the resulting improvement in employment and income conditions.」

「During the nine-month period ended [the current third quarter], the business environment surrounding our Group remained generally firm, with signs of a recovery in capital investment emerging in some areas, supported by improvements in employment and income conditions and the effects of various policy measures.」